The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) said inflation would rise in the second half of this year and maintained its prediction for the Thai economic growth with a 2.75-3.5% rate this year.
The committee stated that the economy would face more pressure from the rising inflation. It said inflation ran at 5.6% in the first half of this year, much higher than its normal level at 1-3%.
The committee predicted that inflation would gallop in the second half of this year because global oil prices remained high and the increase in goods prices was spreading. If the electricity fee is raised between September and December, it will further push up inflation which will affect households’ purchasing power and the costs of businesses, JSCCIB said.
Positive factors for economic recovery included the obviously improving tourism sector thanks to the end of the Thailand Pass registration mandate, it said. The committee expected the country to welcome as many as 7-8 million visitors this year.
The committee also mentioned government measures to strengthen purchasing power including the fifth phase of the “Khon La Khrueng” co-payment subsidy scheme which should lead to the spending of about 38 billion baht, equivalent to about 0.2% of the gross domestic product.
The positive factors would support the growth of the economy which was currently fragile due to external risks and inflation, JSCCIB said. (TNA)
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